No bond ordinance shall be adopted unless a down payment of at least what percentage is appropriated and paid for?

In New Jersey, when adopting a bond ordinance, a down payment of at least 5% of the total cost of the project being funded must be appropriated and paid. This requirement ensures that a portion of the financing is secured upfront, reflecting a commitment to the project and providing a degree of financial security for the municipality. The 5% down payment serves as a safeguard against overextending the municipality's finances and ensures that there is a vested interest in the successful execution of the project. The specific percentage is established by New Jersey law to provide a standard practice for municipalities, promoting fiscal responsibility and prudent financial management.